In Which of the Following Independent Situations Would a Foreign

question 136

Multiple Choice

In which of the following independent situations would a foreign corporation be classified as a controlled foreign corporation?

• A) The stock is directly owned 12% by Jen, 10% by Kathy, 12% by Leslie, 10% by David, 8% by Ben, and 48% by Mike. Jen, Kathy, Leslie, David, and Ben are all U.S. citizens. Mike is a foreign resident and citizen.
• B) The stock is directly owned 12% by Jen, 10% by Kathy, 12% by Leslie, 10% by David, 8% by Ben, and 48% by Mike. Jen, Kathy, Leslie, David, and Ben are all U.S. citizens. David is married to Kathy. Mike is a foreign resident and citizen.
• C) The stock is directly owned 12% by Jen, 10% by Kathy, 12% by Leslie, 10% by David, 8% by Ben, and 48% by Mike. Jen, Kathy, Leslie, David, and Ben are all U.S. citizens. Ben is Mike's son. Mike is a foreign resident and citizen.
• D) The stock is directly owned 12% by Jen, 10% by Kathy, 12% by Leslie, 10% by David, 8% by Ben, and 48% by Mike. Jen, Kathy, Leslie, David, Ben, and Mike are all U.S. citizens.

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Definitions:

Financial Metric

A quantifiable measure used to assess the financial performance and health of a business entity.

Stock Price

The current price for which a share of a company is bought or sold on the stock market.

Digitized SCM

The use of digital technology to manage and streamline all aspects of the supply chain process, from procurement to distribution.

Siloed Sources

Refers to information or resources that are isolated in separate departments or systems within an organization, hindering integration and efficiency.